6.5 Million Retirees Coming in 2026: The Most Affordable Cities in Midwest and Nevada
An estimated 6.5 million Americans are projected to retire in 2026, driving strong demand for affordable retirement locations. Recent analysis combining Zillow home value data, retirement income statistics from the U.S. Census, and affordability metrics shows that the best cities for retirees are concentrated in the Midwest, especially across Michigan, Ohio, and Indiana. In contrast, the least favorable markets are overwhelmingly located in California.
In the Midwest, housing typically consumes about 22% of income, with required annual earnings often below $55,000. Saginaw, Michigan, ranks first as the best housing market for retirees, with a projected home value increase of approximately 5% and an annual income requirement of $48,000. Mansfield, Ohio, ranks second, followed by Kokomo, Indiana, in third. Ohio has the most cities in the top 20 overall.
The worst housing markets for retirees are heavily concentrated in California, where San Jose ranks as the most unaffordable, demanding more than $368,000 in annual income with housing costs exceeding 62% of income. Other California cities dominating the bottom rankings include San Francisco, Santa Cruz, and Los Angeles.
As for Nevada, the state emerges as a highly appealing retirement destination thanks to its favorable tax policies, including no state income tax and exemptions for Social Security and most retirement income. Northern Nevada cities generally outrank southern ones, largely due to milder weather, close proximity to mountains and lakes, and abundant outdoor recreation opportunities.
Carson City, the state capital located near Reno and Lake Tahoe, tops the list as Nevada's highest ranked retirement spot. In southern Nevada, the top markets for retirees include Henderson, Mesquite, and Boulder City.
Overall, Nevada appeals to retirees with its favorable taxes and year round activities, though the state ranks in the middle nationally. Key drawbacks include limited healthcare access in rural regions and rising living costs in certain areas.
